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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500033 | NSE: FORCEMOT

Force Motors Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 12, 2024, 10:13 pm

Market Cap 9,143 Cr.
Current Price 6,945
High / Low10,278/3,333
Stock P/E19.2
Book Value 1,883
Dividend Yield0.29 %
ROCE23.8 %
ROE18.8 %
Face Value 10.0
PEG Ratio0.08

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Force Motors Ltd

Competitors of Force Motors Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Force Motors Ltd 9,143 Cr. 6,94510,278/3,33319.2 1,8830.29 %23.8 %18.8 % 10.0
SML ISUZU Ltd 2,307 Cr. 1,5952,480/1,22518.7 2281.00 %23.6 %46.1 % 10.0
Olectra Greentech Ltd 13,062 Cr. 1,5912,222/1,168116 1200.03 %14.8 %8.77 % 4.00
Tata Motors Ltd 3,01,952 Cr. 8201,179/6499.04 2750.37 %20.1 %49.4 % 2.00
Ashok Leyland Ltd 66,070 Cr. 225265/15825.5 35.12.17 %15.0 %28.4 % 1.00
Industry Average78,506.80 Cr2,235.2037.69508.220.77%19.46%30.29%5.40

All Competitor Stocks of Force Motors Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales9387788819711,2641,3041,4901,4881,8021,6922,0111,8851,941
Expenses8987928859301,1661,2501,3721,3101,5811,4771,7331,6401,664
Operating Profit40-14-3419854118177221215279245277
OPM %4%-2%-0%4%8%4%8%12%12%13%14%13%14%
Other Income151387125246119418159
Interest91213142017181816141495
Depreciation45505557616063636768686969
Profit before tax1-64-63-2330-18284107147137214182211
Tax %195%-33%-32%-29%36%-14%48%36%36%37%35%36%36%
Net Profit-1-43-43-1719-16147699485140116135
EPS in Rs-0.81-32.51-32.46-12.6114.61-11.83111.2552.0671.2464.81106.4587.81102.47

Last Updated: November 6, 2024, 6:44 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,9732,0222,3643,0253,0693,4233,6523,0811,9883,2405,0296,9927,389
Expenses1,9191,9252,2172,7512,8013,1553,3782,8201,9643,1904,7166,0966,430
Operating Profit54971472742682682752612450313897959
OPM %3%5%6%9%9%8%8%8%1%2%6%13%13%
Other Income4460667186698232522683746
Interest89756715282841686253
Depreciation70858192113129151195174191241267273
Profit before tax196312524923520119042-176-130272605680
Tax %25%-24%19%28%23%27%25%-20%-30%-30%51%36%
Net Profit147810217918014714350-124-91134388435
EPS in Rs10.9459.0877.06135.77136.68111.66108.7838.08-93.83-69.12101.42294.54330.33
Dividend Payout %27%5%6%7%7%9%9%26%-5%-14%10%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)457.14%30.77%75.49%0.56%-18.33%-2.72%-65.03%-348.00%26.61%247.25%189.55%
Change in YoY Net Profit Growth (%)0.00%-426.37%44.72%-74.93%-18.89%15.61%-62.31%-282.97%374.61%220.64%-57.70%

Force Motors Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:14%
3 Years:52%
TTM:24%
Compounded Profit Growth
10 Years:18%
5 Years:22%
3 Years:80%
TTM:156%
Stock Price CAGR
10 Years:18%
5 Years:46%
3 Years:61%
1 Year:66%
Return on Equity
10 Years:6%
5 Years:3%
3 Years:6%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 3:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital13131313131313131313131313
Reserves1,1411,2151,3061,4761,6541,7881,9201,9521,8251,7351,8622,2422,468
Borrowings4220111419902863106421,069955524229
Other Liabilities5145276458017387226178237578441,1841,6351,511
Total Liabilities1,7111,7751,9752,3052,6042,5232,8363,0983,2383,6614,0134,4154,222
Fixed Assets6226436387869119481,2161,4001,2242,0332,0942,0312,146
CWIP18920624020522036937244572530215417159
Investments000149102378100111979190
Other Assets9009251,0971,3001,4631,1961,2251,1751,1891,2151,6682,1211,927
Total Assets1,7111,7751,9752,3052,6042,5232,8363,0983,2383,6614,0134,4154,222

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +861162262564712563144097185321,014
Cash from Investing Activity +-304-100-96-210-621-81-606-327-333-356-256-198
Cash from Financing Activity +-16-30-45-37180-223256-20293375-207-509
Net Cash Flow-234-1485930-47-3562-323768308

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow12.0077.00136.00260.0069.00268.00-11.00-49.00-618.0049.00-642.00373.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days20241718142617202321145
Inventory Days9997879273686691136897783
Days Payable6577877080815295108726961
Cash Conversion Cycle54441740613311552382227
Working Capital Days25241523534348112216205
ROCE %6%10%18%14%11%10%5%-5%-3%5%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters61.63%61.63%61.63%61.63%61.63%61.63%61.63%61.63%61.63%61.63%61.63%61.63%
FIIs2.39%2.46%2.60%2.49%2.55%2.71%2.72%4.11%4.94%4.91%6.34%7.78%
DIIs2.67%2.54%3.31%2.90%2.20%2.19%2.32%1.48%1.59%1.20%0.86%1.02%
Public33.31%33.37%32.46%32.98%33.62%33.47%33.33%32.77%31.86%32.27%31.16%29.57%
No. of Shareholders61,50361,57061,03660,30158,47554,91253,95850,22148,08647,55647,74251,909

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Sundaram ELSS Tax Saver Fund39,0002.5834.9739,0002024-10-190%
Sundaram Equity Savings Fund (Growth Accum)12,5001.3311.2139,0002024-10-19-67.95%
Sundaram Equity Savings Fund (Qtr Div)12,5001.3311.2139,0002024-10-19-67.95%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)294.54101.43-69.13-93.8338.08
Diluted EPS (Rs.)294.54101.43-69.13-93.8338.08
Cash EPS (Rs.)507.43298.2488.4847.10191.96
Book Value[Excl.RevalReserv]/Share (Rs.)1712.711424.221327.661395.851492.53
Book Value[Incl.RevalReserv]/Share (Rs.)1712.711424.221327.661395.851492.53
Revenue From Operations / Share (Rs.)5305.113815.612458.591508.492337.27
PBDIT / Share (Rs.)719.11297.3090.3028.82236.46
PBIT / Share (Rs.)516.72114.64-54.58-102.9488.87
PBT / Share (Rs.)469.57220.80-85.71-124.3638.10
Net Profit / Share (Rs.)305.04115.58-56.39-84.6744.37
NP After MI And SOA / Share (Rs.)294.45101.40-69.10-93.8038.06
PBDIT Margin (%)13.557.793.671.9110.11
PBIT Margin (%)9.743.00-2.21-6.823.80
PBT Margin (%)8.855.78-3.48-8.241.63
Net Profit Margin (%)5.743.02-2.29-5.611.89
NP After MI And SOA Margin (%)5.552.65-2.81-6.211.62
Return on Networth / Equity (%)17.207.12-5.21-6.722.55
Return on Capital Employeed (%)24.506.03-3.02-5.735.35
Return On Assets (%)8.793.32-2.48-3.811.61
Long Term Debt / Equity (X)0.160.310.340.260.09
Total Debt / Equity (X)0.230.500.610.280.11
Asset Turnover Ratio (%)1.661.300.930.621.04
Current Ratio (X)1.251.040.801.011.13
Quick Ratio (X)0.530.480.300.370.52
Inventory Turnover Ratio (X)5.265.374.322.744.06
Dividend Payout Ratio (NP) (%)0.009.86-7.23-10.6626.27
Dividend Payout Ratio (CP) (%)0.003.526.5926.335.38
Earning Retention Ratio (%)0.0090.14107.23110.6673.73
Cash Earning Retention Ratio (%)0.0096.4893.4173.6794.62
Interest Coverage Ratio (X)15.255.732.901.3511.19
Interest Coverage Ratio (Post Tax) (X)7.470.18-0.81-2.954.50
Enterprise Value (Cr.)9625.282352.962346.332030.171137.32
EV / Net Operating Revenue (X)1.380.460.721.020.36
EV / EBITDA (X)10.166.0019.7253.443.65
MarketCap / Net Operating Revenue (X)1.370.300.410.770.31
Retention Ratios (%)0.0090.13107.23110.6673.72
Price / BV (X)4.230.810.770.830.49
Price / Net Operating Revenue (X)1.370.300.410.770.31
EarningsYield0.040.08-0.06-0.080.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Force Motors Ltd as of November 15, 2024 is: 6,816.59

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Force Motors Ltd is Overvalued by 1.85% compared to the current share price 6,945.00

Intrinsic Value of Force Motors Ltd as of November 15, 2024 is: 22,870.60

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Force Motors Ltd is Undervalued by 229.31% compared to the current share price 6,945.00

Last 5 Year EPS CAGR: 235.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 25.42, which is a positive sign.
  2. The company has higher reserves (1,737.23 cr) compared to borrowings (330.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.23 cr) and profit (182.69 cr) over the years.
  1. The stock has a low average ROCE of 7.92%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 29.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Force Motors Ltd:
    1. Net Profit Margin: 5.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.5% (Industry Average ROCE: 19.46%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.2% (Industry Average ROE: 30.29%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.47
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.53
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.2 (Industry average Stock P/E: 37.69)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.23
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Force Motors Ltd. is a Public Limited Listed company incorporated on 08/09/1958 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L34102PN1958PLC011172 and registration number is 011172. Currently Company is involved in the business activities of Manufacture of motor vehicle engines. Company’s Total Operating Revenue is Rs. 3240.04 Cr. and Equity Capital is Rs. 13.18 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - LCVs/HCVsMumbai-Pune Road, Akurdi, Pune Maharashtra 411035compliance-officer@forcemotors.com
http://www.forcemotors.com
Management
NamePosition Held
Mr. Abhaykumar FirodiaChairman
Mr. Prasan FirodiaManaging Director
Mr. Prashant V InamdarExecutive Director - Operations
Ms. Sonia PrasharDirector
Lt. Gen. (Retd.) D B ShekatkarDirector
Mr. Vallabh Roopchand BhanshaliDirector
Mr. Mukesh Mangalbhai PatelDirector
Mr. Arvind MahajanDirector

FAQ

What is the latest intrinsic value of Force Motors Ltd?

The latest intrinsic value of Force Motors Ltd as on 15 November 2024 is ₹6816.59, which is 1.85% lower than the current market price of ₹6,945.00.

What is the Market Cap of Force Motors Ltd?

The Market Cap of Force Motors Ltd is 9,143 Cr..

What is the current Stock Price of Force Motors Ltd as on 15 November 2024?

The current stock price of Force Motors Ltd as on 15 November 2024 is ₹6,945.

What is the High / Low of Force Motors Ltd stocks in FY 2024?

In FY 2024, the High / Low of Force Motors Ltd stocks is 10,278/3,333.

What is the Stock P/E of Force Motors Ltd?

The Stock P/E of Force Motors Ltd is 19.2.

What is the Book Value of Force Motors Ltd?

The Book Value of Force Motors Ltd is 1,883.

What is the Dividend Yield of Force Motors Ltd?

The Dividend Yield of Force Motors Ltd is 0.29 %.

What is the ROCE of Force Motors Ltd?

The ROCE of Force Motors Ltd is 23.8 %.

What is the ROE of Force Motors Ltd?

The ROE of Force Motors Ltd is 18.8 %.

What is the Face Value of Force Motors Ltd?

The Face Value of Force Motors Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Force Motors Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE